Although many have feared that commercial mortgages would be affected by the housing crisis, experts are assuring that the majority of these loans are safe and have quite a few years before they become mature.
“There’s been a general impression that a large volume of commercial/multifamily mortgages are coming due this year and next,” said Jamie Woodwell, Senior Director of Commercial/Multifamily Research at the Mortgage Bankers Association. “The reality is that 2008 and 2009 will see a relatively small volume of maturing mortgages, with the majority of CMBS loans not maturing until 2015 or later.”
The Originator Times reports, “DataNote reports that there is more than $600 billion of outstanding loans in commercial mortgage-backed securities (CMBS) fixed-rate deals. Of this, only $16 billion is scheduled to mature in 2008 and another $19 billion in 2009. The surge in sales and financing volume during 2005, 2006 and 2007, coupled with the fact that CMBS loans tend to have a 10-year term, mean that the majority of CMBS loans will not mature until 2015 or later — $98 billion of loans are scheduled to mature in 2015, $128 billion in 2016 and $127 billion in 201.”
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